USD/CAD Rises Amid Geopolitical Risks and Higher Oil Prices
The Canadian Dollar remains under pressure as higher oil prices and geopolitical risks fail to offset its decline against the US Dollar. The USD/CAD pair is trading near mid-1.3800s, with some buying interest observed for the second consecutive day.
The safe-haven US Dollar continues to benefit from inflation-driven Fed hike bets and persistent geopolitical uncertainties, which are acting as a tailwind for the pair. However, an uptick in crude oil prices could support the commodity-linked Loonie and cap gains for the currency pair.
Escalating US-Iran tensions are adding to the geopolitical risk premium, with Treasury Secretary Scott Bessent announcing that the US is launching a campaign to isolate Iran from the global economy. This move is supporting crude oil prices and the safe-haven Greenback.